Interpublic Group has reported organic revenue growth (excluding billable expenses) of 1.7% in the second quarter of 2024, with total revenue (including billable expenses) of $2.71 billion, up from $2.67 billion in the same period last year.
Revenue before billable expenses, or net revenue, was $2.33 billion, down 0.1% on Q2 2023. Total revenue excluding billable expenses was $4.51 billion.
The group, which owns agencies including McCann, MullenLowe, FCB and IPG Mediabrands, recorded a year-on-year net income (or net profit) of $214.5 million, down 19.2% from $265.5 million in Q2 2023. In its previous results, IPG reported a 12% fall in net profit for Q1 but an increase in organic revenue of 1.3%.
Creativity leads the way
IPG's creative shops performed the strongest during Q2, as they did in the Q1 results. Integrated advertising and creativity-led solutions – including McCann Worldgroup, MullenLowe Group and FCB, grew net revenue 3% to $910.1 million.
Net revenue across media, data and engagement solutions – housing IPG Mediabrands, Acxiom and specialist agencies including MRM, R/GA and Huge – was up just 0.8% to $1.06 billion.
Lastly, net revenue for specialised communications and experiential solutions – including PR agencies Weber Shandwick and Golin – experienced organic growth of 1.3% to $353.5 million.
US grows the least of global markets
Broken down by region, the UK experienced organic growth in net revenue of 3.4%, continental Europe outperformed the rest of the world, at 6.3% growth, followed by Latin America (up 4.1%), all other markets (1.5%) and the US (up 1.3%). Asia Pacific was the only region to fall, down 2.4%.
Philippe Krakowsky, IPG’s chief executive, described the performance as “solid, with moderate acceleration in organic growth, as well as margin expansion compared to the same period last year”.
He continued: “Consistent with our longer-term performance, IPG Mediabrands and IPG Health led the way in the quarter. We also saw notable contributions to growth from Deutsch LA, Golin and Acxiom. Creatively, our agencies continued to garner exceptional levels of recognition for the quality of their ideas and innovation, across all marketing disciplines.”
Krakowsky said that given trends among its client base and more broadly across the economy, that IPG is expecting “full-year organic growth of approximately 1% and, at that level of growth, continue to target adjusted EBITA margin of 16.6%”.
In April’s Q1 results, IPG was forecasting organic growth of 1-2%.
A month ago, Campaign reported that IPG had turned down an investor who made an approach to buy MullenLowe.
This article first appeared on Campaign UK.
